Axian Telecom, located in Mauritius, plans to purchase Wananchi Group, the owner of the Zuku brand throughout Africa, for an unknown amount. Documents submitted to the Comesa Competition Commission indicate that Axian intends to purchase 99.63 per cent of Wananchi Group.
Axian’s influence in African Telecommunications
Axian’s owner is Hassanein Hiridjee from Madagascar. The company runs Tigo and Zantel in Tanzania and other businesses in Uganda, the Democratic Republic of the Congo, Mauritius, Madagascar, and the Comoros.
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Wananchi will need to give up its share in the satellite communications company iSat Africa Limited. iSat Africa Ltd FZC is the company’s parent company. It was founded in the United Arab Emirates and has branches in Kenya and Zambia.
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AXIAN Telecom has subsidiaries and affiliates in Tanzania, Madagascar, Togo, Uganda, DRC, Senegal, Réunion, Mayotte, and the Comoros. It offers mobile and fixed networks, digital infrastructure, and mobile banking services. Since 2015, active acquisitions and massive network expenditures have made AXIAN Telecom Africa’s 6th largest mobile provider, with 40 million customers and a market disruptor.
The first internet service provider in Kenya, Wananchi Online, was founded in 1998 by late entrepreneur Njeri Rionge and former ICT Cabinet Secretary Joe Mucheru. After diversifying beyond the internet, it became Wananchi Group a decade later. In 2018, the Kenya Revenue Authority (KRA) penalised the corporation Ksh3.4 billion in taxes, while its shareholders fought over Ksh 20 billion. Four years later, Wananchi shareholders Triple HoldCo Ltd, Liberty Global Europe 2 Ltd, and Altice Africa SARL converted loans and acquired 75% of the firm, taking over from the original shareholders.
Triple Hold Co Limited, Liberty Global Europe 2 Limited (Liberty), and Altice Africa S.A.R.L (Altice) received equity shares and Wananchi Group’s controlling rights from the Kenya Competition Authority in August 2022. CAK granted convertible loans to Wananchi Group through equity shares and controlling powers.
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Private equity firms like Liberty Global, Emerging Capital Partners, Export Development Canada, Altice, and Prudence Holdings, among others, provided Wananchi with extensive equity and debt financing via the Internet so that it could expand its business in Kenya, Uganda, Tanzania, Burundi, Rwanda, Somalia, South Sudan, Ethiopia, Zambia, Malawi, and Mauritius.
ZUKU, formerly a prominent competitor in Kenya’s fixed wireless internet market, was rapidly losing market share, and Starlink’s debut in Africa didn’t help the internet-focused corporation.
Axian strategic investment for growth
Axian’s investment in Wananchi Group is driven by the growing demand for broadband and digital entertainment in East Africa. The acquisition aligns with Axian’s mission to provide affordable and accessible connectivity across the continent, ensuring that Zuku remains a significant player in the region’s telecommunications landscape. This move also underscores Axian’s confidence in the potential for growth in Africa’s digital infrastructure.